All about cryptocurrency airdrop and its types

Arthur

This Article was Reviewed by The Chief Editor, Godfrey

Spread the love

A cryptocurrency is a great way of quickly promoting a newly launched cryptocurrency among a large group of people. Nowadays, many people are familiar with cryptocurrencies and trying their best to get profit from them. So, it would definitely catch their attention when they hear about crypto airdrops. This cryptocurrency strategy emerged in the early 2010s and is effective in making many people aware of a specific token or coin. Nowadays, you can also find certain crypto exchanges, like Bitcoin 360 AI, offering airdrops.

In an airdrop, you can receive cryptocurrency in your wallet for free without effort, like a present. Usually, startups in the cryptocurrency world make use of this method to make promotions. But these days, you can find many cryptocurrency airdrops happening every day. Here’s some information about crypto airdrops that you should know.

About cryptocurrency airdrop

A cryptocurrency airdrop is a marketing strategy in which new virtual currency is distributed to certain wallet addresses belonging to active members of the blockchain community. Small amounts of the new currency will be sent out to these individual wallets for free. At times, individuals are rewarded with tokens in exchange for completing minor tasks, such as filling out a survey or performing other similar services. The underlying goal of this approach is to promote the circulation and visibility of new cryptocurrencies in the market. However, this method can also be utilized by individuals facing declining demand or popularity for their cryptocurrency. In such cases, these tokens may be distributed as a means of generating renewed interest and support for the currency. 

Cryptocurrency airdrop requirements

Also Read:  5 of the Biggest Crypto Thefts Ever

Crypto airdrops are usually promoted on the company website, social media platforms, and crypto forums. Usually, these tokens or crypto will be distributed directly to the wallets designated by the issuing company based on their blockchain network or coin holdings in the existing wallets. In most cases, to become eligible for this free gift, a recipient must hold a minimum quantity of the cryptocurrency in their wallet. At the same time, others may ask you to complete certain tasks related to the project to become eligible for cryptocurrency airdrop.

Different types of cryptocurrency airdrops

  • Standard Airdrop

Standard airdrop, as the name suggests, does not require any additional requirements or tasks. The participants just have to express their interest by providing a valid wallet address to become eligible for this airdrop. Standard airdrops usually plan on distributing a set of many tokens to the participants. These airdrops are not concerned about the number of individual wallets of the participants, which means some people can receive more tokens than others. These distributions are time sensitive and simple to use, which makes them popular. But on the other hand, it is also susceptible to abuse by one or more individuals (creating multiple accounts – by a single user).

  • Bounty Airdrop
Also Read:  What is Cardano?

Bounty airdrops are those wherein users must take specific actions or complete certain tasks to support a project. These tasks might involve posting on social media, tagging a company, etc. Sometimes, you can also find referral bonuses when other people join the project by your referral. In most cases, the individuals completing these tasks receive the rewards as points which can be used to redeem airdrops.

  • Holder Airdrop

In a holder airdrop, people can receive cryptocurrency tokens for free as a gift if they hold a certain amount of existing cryptocurrencies in the wallet. The reward or amount of coins you receive in an airdrop might also depend on the total amount of coins you hold in your wallet. In some cases, you may need a certain amount of existing cryptocurrency holdings to be eligible for the cryptocurrency airdrop. Such airdrops are usually determined based on the snapshot taken at an agreed date or time.

  • Exclusive Airdrop

An exclusive type of airdrop involves choosing particular people for distribution rather than selecting them based on the number of tokens they already possess. It is mostly done based on other factors like how long an individual has been involved with a project, their spending habits relative to non-token activity, etc. An exclusive airdrop is more centralized, and you can earn the reward even if you do not hold any tokens.

Also Read:  BTC EU Experiences - The online broker that is changing the game

Conclusion

You must always remember that the number of individuals interested in the crypto airdrop will be far more than the airdrops offered. Random draws are performed, and only a limited number of wallets will be selected for receiving the gift. Thus, the chances of being selected will be much lower than winning.

AtlanticRide

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox, every month.

We don’t spam! Read our privacy policy for more info.


Spread the love

About the Chief Editor

Godfrey Ogbo, the Chief Editor and CEO of AtlanticRide, merges his environmental management expertise with extensive business experience, including in real estate. With a master's degree and a knack for engaging writing, he adeptly covers complex growth and business topics. His analytical approach and business insights enrich the blog, making it a go-to source for readers seeking thoughtful and informed content.

Leave a Comment